Alejandro Rojas, VP of Applied Analytics at Parrot Analytics, reviewed at VS Next’ session the most recent indicators of the consultancy, and offered some brief options on the large OTT market.
The executive began by offering data on the five streaming majors worldwide, highlighting Netflix (221.6 million), Amazon Prime Video (200 million), Disney+ (137.7 million), HBO Max (76.8 million) and Paramount + (39.6 million), the which as a whole encompass more than 600 million subscriptions.
‘These metrics tell us a lot, especially the rapid growth of Disney + and HBO, perhaps faster than Netflix. Based on this, investors are looking to the sidelines, to other big competitors, and also to medium ones, who are learning the pros and cons of the operation’.
Rojas pointed out that compared to 2021, this year the demand for streaming content in the US for Netflix had a retraction of 0.5%, while its direct competitors (HBO Max and Disney+, added 25.1% and 21.5 % of demand respectively. Therefore, the executive assures that there is still a niche of opportunities in the market. ‘Netflix is great, but Netflix is no longer growing as fast as before, which means that there is an audience waiting for the right content.’
He also assured that the North American market is experiencing ‘a saturation of SVOD’, and that ‘although it is a challenge for the big streamers and producers for these services, it is an opportunity for niche platforms and for new creators. There are new platforms that are more open to working with more flexible business models’.
The executive also delved into the Netflix crisis: ‘Another issue is the amount of permanent content that Netflix has in its catalog, which together with the supply that is now on the market, both indicators exceed current demand. Perhaps Netflix is not understanding its users well and some are migrating to another service or directly left the platform when they finished watching the last season of one of their series’.
The executive concluded that it is a ‘good time’ for producers and for those services that aim at a ‘more modest’ market: ‘These can find interesting alliances with big players that in turn function as content aggregators or with models of friendlier business with emerging players’, concluded Rojas.
